The global market for automotive carpeting and roofing market exhibits a consolidated structure, finds a report by Transparency Market Research (TMR). The top four players in this market, namely Faurecia, Lear Corporation, Autoneum Holding Ltd and Magna International, Inc. together accounted for around 50% in this market in 2016.

As these players are aggressively focusing on product innovation, technological advancement and acquisition among other strategies to gain greater visibility, the competition within the market is likely to intensify further in the years to come.

As per TMR’s estimations, the global automotive carpeting and roofing market, which stood at US$13,514.1 mn in 2016, is anticipated to expand at a healthy CAGR of 5.9% during the period from 2017 to 2025, increasing the opportunity in this market to US$22,699.5 mn by the end of the forecast period. The passenger vehicle segment has emerged as the key market for automotive carpeting and roofing and is expected to retain its position over the forecasted period.

Rising Demand of New Segment of Vehicles: Hybrid and Electrical Vehicles is expected to increase the Demand in Automotive Carpeting and Roofing Market

Geographically, the research report categorizes the worldwide market for automotive carpeting and roofing market into North America, Europe, Asia Pacific, Europe, Middle East and Africa and Latin America. It further presents a comprehensive analysis of the global market on the basis of the performance of these regional markets. Rising demand of hybrid vehicles and electric vehicles is expected to increase demand in automotive carpeting and roofing market. Europe and North America are the leading players in adoption of hybrid and electric vehicles. The government in Europe and North America are promoting these vehicles as they are fuel efficient and environmental friendly. Norway is providing tax incentives such as exemption from VAT (Value Added Tax), sales tax among others on purchase of BEVs (Battery Electric Vehicles). Asia Pacific region is also quickly adopting hybrid and electric vehicles due to their fuel efficiency. Governments of China and India among others are providing incentives for their promotion.

Indian government is providing tax incentives in purchase of hybrid and electric vehicles of up to INR 29,000 for motor cycles and INR 1.38 lakh for cars under the FAME (Faster Adoption and Manufacturing of Hybrid & Electronic Vehicles) scheme launched in India in 2016. FAME is part of India’s NEMMP (National Electric Mobility Mission Plan) 2020 plan. A small percentage of hybrid and electric vehicles are already available in the market. In the Asia Pacific region, in major countries such as India and China, the percentage in usage of hybrid and electric vehicles are expected to grow in the coming years because of their eco-friendly use and efficiency. Therefore, with the rise in the number of hybrid and electric vehicles in the automobile market of Asia Pacific, the application and market for automotive carpeting and roofing is set to flourish in the coming years in the particular region.

Governments in various countries are developing infrastructure for hybrid and electric vehicles such as battery charging stations, battery manufacturing for hybrid and electric vehicles among others to further promote these type of vehicles. Thus rising adoption of hybrid and electric vehicles across the world including China, India, Singapore, Japan and South Korea among others is expected to increase demand for automotive carpeting and roofing market.

Fluctuation in vehicle production

“The global market for automotive carpeting and roofing market is heavily influenced by the significant rise in demand for automobiles among consumers especially in Asia Pacific region,” says the author of this report. High fluctuation in the percentage of vehicle production is a major restraint faced by automotive carpeting and roofing manufacturing companies which is affecting the market and reducing the demand for automotive carpeting and roofing materials across the globe.